The US chemicals company DuPont has reported record earnings for the latest quarter and for the year.
Fourth-quarter earnings of US$ 1.52 per share were up from US$ 1.28 in the fourth quarter of 1995…
The US chemicals company DuPont has reported record earnings for the latest quarter and for the year. Fourth-quarter earnings of US$ 1.52 per share were up from US$ 1.28 in the fourth quarter of 1995, excluding 1995 non-recurring charges, but slightly below analysts“ estimates of US$ 1.55. Net income for the fourth quarter was US$ 858 million, up from US$ 627 million in 1995. Fourth-quarter sales of US$ 11.4 billion were 10% higher than in the same period of 1995, driven by a 26% increase in petroleum sales. But the chemicals business was hit by a 4% fall in selling prices in the fourth quarter. Chemicals and speciality chemicals sales were down 2% for the quarter but, adjusting for the divestiture of a medical products businesses and the formation of the DuPont Dow Elastomers joint venture, sales rose 6%. The company said it has “regained financial flexibility” by completing repayment of the US$ 8 billion of debt incurred in 1995 to redeem shares from Seagram and by repurchasing for US$ 500 million the 156 million warrants issued to Seagram. Mr Paul Raman, chemicals analyst at PaineWebber said that the prospect of the company selling or spinning off parts of its business this year should help boost its share price. In a statement, Mr John Krol, DuPont“s president and chief executive officer said that “we have taken a number of significant steps toward strengthening and positioning our business portfolio for profitable growth”. DuPont also declared a first quarter common stock dividend of 57 cents per share, payable on 14 March to stockholders of record on 14 February. This dividend is the same as that paid in the fourth quarter of 1996.